BUS 210
Managing & Leading in Business
MIDTERM READINESS EXAM
GUIDE
Q&S
©2024/2025
,1. Which of the following is NOT a component of
transformational leadership?
A) Inspirational motivation
B) Intellectual stimulation
C) Transactional rewards
D) Individualized consideration
Answer: C) Transactional rewards
Rationale: Transactional rewards are part of
transactional leadership, not transformational leadership.
2. What is the primary focus of a “managerial grid” in
leadership styles?
A) Emotional intelligence
B) Task vs. people orientation
C) Crisis management
D) Strategic planning
Answer: B) Task vs. people orientation
Rationale: The managerial grid assesses leadership
behavior in terms of concern for people and concern for
production.
3. In Kotter's 8-Step Change Model, which step involves
creating urgency for change?
A) Forming a powerful coalition
B) Establishing a vision
C) Communicating the vision
D) Creating a sense of urgency
Answer: D) Creating a sense of urgency
Rationale: This step is crucial to motivate change and
get buy-in from stakeholders.
4. What type of organizational structure allows for
©2024/2025
, decentralized decision-making and adaptability?
A) Functional structure
B) Divisional structure
C) Matrix structure
D) Flat structure
Answer: D) Flat structure
Rationale: A flat structure generally features fewer
management levels, allowing quicker decision-making.
5. Which model emphasizes the role of stakeholders in
organizational decision-making?
A) The Managerial Grid
B) The Situational Leadership Model
C) The Stakeholder Theory
D) The Balanced Scorecard
Answer: C) The Stakeholder Theory
Rationale: The Stakeholder Theory posits that
companies should consider the interests of all stakeholders,
not just shareholders.
Fill-in-the-Blank Questions
6. In the context of team dynamics, _____ refers to the
extent to which team members are willing to share their
opinions and feelings.
Answer: Trust
Rationale: Trust is central to effective team dynamics
and open communication.
7. The _____ theory suggests that leaders should adjust
their styles depending on the maturity of their followers.
Answer: Situational Leadership
Rationale: Situational Leadership Theory posits that
©2024/2025
Managing & Leading in Business
MIDTERM READINESS EXAM
GUIDE
Q&S
©2024/2025
,1. Which of the following is NOT a component of
transformational leadership?
A) Inspirational motivation
B) Intellectual stimulation
C) Transactional rewards
D) Individualized consideration
Answer: C) Transactional rewards
Rationale: Transactional rewards are part of
transactional leadership, not transformational leadership.
2. What is the primary focus of a “managerial grid” in
leadership styles?
A) Emotional intelligence
B) Task vs. people orientation
C) Crisis management
D) Strategic planning
Answer: B) Task vs. people orientation
Rationale: The managerial grid assesses leadership
behavior in terms of concern for people and concern for
production.
3. In Kotter's 8-Step Change Model, which step involves
creating urgency for change?
A) Forming a powerful coalition
B) Establishing a vision
C) Communicating the vision
D) Creating a sense of urgency
Answer: D) Creating a sense of urgency
Rationale: This step is crucial to motivate change and
get buy-in from stakeholders.
4. What type of organizational structure allows for
©2024/2025
, decentralized decision-making and adaptability?
A) Functional structure
B) Divisional structure
C) Matrix structure
D) Flat structure
Answer: D) Flat structure
Rationale: A flat structure generally features fewer
management levels, allowing quicker decision-making.
5. Which model emphasizes the role of stakeholders in
organizational decision-making?
A) The Managerial Grid
B) The Situational Leadership Model
C) The Stakeholder Theory
D) The Balanced Scorecard
Answer: C) The Stakeholder Theory
Rationale: The Stakeholder Theory posits that
companies should consider the interests of all stakeholders,
not just shareholders.
Fill-in-the-Blank Questions
6. In the context of team dynamics, _____ refers to the
extent to which team members are willing to share their
opinions and feelings.
Answer: Trust
Rationale: Trust is central to effective team dynamics
and open communication.
7. The _____ theory suggests that leaders should adjust
their styles depending on the maturity of their followers.
Answer: Situational Leadership
Rationale: Situational Leadership Theory posits that
©2024/2025
